Liquidity in focus: adapting to a 24/7 treasury

Manufacturers have emerged from the extreme volatility of the pandemic into a more stable, but still demanding, landscape. The whiplash of 2020 and 2021, from shortages and order backlogs to sudden inventory gluts, continues to weigh on treasuries. Working capital is a persistent pressure point, with sectors such as semiconductors and industrials recording some of the steepest increases in cash conversion cycles over the past year. Large automotive and electronics producers, for example, were left holding excess component stock. Receivables have also stretched as downstream customers delayed payments, leaving significant cash trapped in working capital. The priority for 2025 is to reverse this trend through tighter credit control, enhanced risk management and better visibility across the treasury function.

Geopolitics add another layer of complexity. Trade tensions and export controls are reshaping supply chains, raising costs and locking up cash in transit. At the same time, diversification strategies such as “China+1” and US near-shoring to Mexico are opening new opportunities and, in some cases, shortening cash cycles. Southeast Asia and Mexico are attracting fresh investment as global producers establish alternative production hubs, often supported by incentives that boost initial cash positions. Unsurprisingly, domestic payments rank among the core products demanded by this segment, requiring providers with local expertise and the ability to deliver rapid implementation.

The energy sector, spanning oil and gas, utilities and renewables, has been the segment with the most drastic business and operational changes in the past decade. 2022 delivered a windfall for oil and gas producers as post-pandemic demand collided with supply shocks from geopolitical tensions, especially in Central and Eastern Europe. Crude surged above $100 a barrel, European gas prices hit records and the majors generated cash at a historic scale. From January 2021 to September 2023, the five largest international oil companies produced $613 billion of operating cash flow. About 40% of that went straight back to investors through dividends and buybacks, while much of the remainder paid down debt. By early 2024, leverage was lower, cash reserves higher and treasurers enjoyed a flexibility not seen in decades.

This cash flush comes with a strategic backdrop: the uncertainty of the energy transition. Fossil fuel demand may peak within years, yet the shift to renewables will take decades. Treasurers therefore balance two imperatives: reward shareholders now to maintain support, while keeping larger cash cushions than before to navigate an uncertain future. On the transition side, for treasurers, funding multi-billion, multi-year projects is a central task. With prices still elevated, many can rely on internal cash, though hedging and credit facilities remain vital backstops. A grip on the treasury flows is mandatory, especially as working capital adds further volatility.

The technology sector has one of the most complex treasury profiles in global corporate banking. Big tech firms rank among the most cash-generative companies in the world, which makes efficiency and real-time visibility over liquidity mandatory. Their treasuries are closely aligned with the macro cycle, moving quickly to capture yield or shield against volatility.

Most technology companies maintain a clear handle on their banking relationships, often with disciplined structures that reflect the scale and global nature of their operations. Only 32% of the Euromoney Cash Management Survey participants from this segment have 3 or more providers.

Technology investment itself is a double-edged sword. On the one hand, tech treasuries are among the most advanced globally, acting as first movers in adopting AI-driven forecasting, embracing API connectivity and piloting new technologies from stablecoins to tokenised assets. On the other, the sector’s own relentless capital expenditure, ranging from AI infrastructure, cloud or semiconductors, consumes vast amounts of cash and demands careful planning of liquidity.

Foreign exchange adds further complexity. With operations spanning multiple jurisdictions, hedging is a constant priority, requiring sophisticated software and tools to deliver visibility and control across flows.

This is also one of the few segments where experiments with stablecoins and central bank digital currencies are firmly on the agenda. While still early days, expectations are that technology firms will push boundaries in piloting these instruments as part of their treasury evolution.

Africa’s economies create a very diverse cash management landscape, with high inflation, persistent FX shortages and the rapid spread of mobile money, while both global banks and regional champions compete to provide solutions.

In this environment, relationship banks such as Citi (#1 choice of corporates on the continent), Standard Chartered and Access dominate, providing FX expertise, payments and liquidity management in an otherwise highly risky and difficult market.

Citi leads, combining exceptional client service with advanced technology. Standard Chartered scores highly for its international connectivity, while Standard Bank stands out for its local presence, strong product suite and recognised as the top provider for client service in the region. Access, Absa and Ecobank are also prominent, reflecting their regional reach and ability to deliver digital solutions. Société Générale, BNP Paribas and Attijariwafa remain influential in francophone markets, while Bank of Africa provides regional breadth across smaller economies.

In sub-Saharan Africa, inflation remains elevated – over 30% at times in Ghana and Ethiopia, more than 100% in Zimbabwe, forcing central banks to hike rates to punitive levels. For corporates, local borrowing is prohibitively expensive. Treasurers therefore prioritise internal funding, supplier credit and cash cycle optimisation.

Currency depreciation and FX shortages are big headwinds. The Ghanaian cedi halved in 2022, while Nigeria’s naira was devalued in 2023 but still trades at a premium on parallel markets. Corporates struggle to access dollars to repatriate profits or pay suppliers. Treasurers respond with multi-currency strategies: holding offshore US$ or €, matching local revenues with local expenses and timing FX access through central bank auctions or export proceeds.

East Africa showcases Africa’s fintech leapfrog. Kenya’s M-Pesa is entrenched in both consumer and business transactions, enabling daily sweeps from distributors into bank accounts. Interoperability between mobile networks has deepened this integration, and treasurers now include mobile balances in liquidity reporting. Instant payments are also gaining ground: Kenya, Tanzania and Uganda are expanding real-time switches. Standard Chartered, Citi and Ecobank are particularly active in supporting corporates here with digital rails and cross-border connectivity.

The CFA franc zone (Ivory Coast, Senegal, etc.) offers rare stability thanks to its euro peg. Inflation is low and interest rates moderate, allowing treasurers to plan with more certainty. Growth is strong in some economies, though political instability in Mali, Burkina Faso and Niger complicates operations. Banks like Société Générale, BNP Paribas and Attijariwafa, with deep local franchises, are key providers, valued for their ability to navigate regulatory nuances and sanctions risks.

Fintechs continue to challenge traditional banks, especially in payments. Cross-border settlement is a particular pain point: transactions often route via Europe or the United States, adding cost and delay. The Pan-African Payment and Settlement System (PAPSS) is now live with more than a dozen central banks, enabling local currency cross-border payments. If widely adopted, treasurers could settle a Ghana – Kenya payment directly in cedi and shillings, reducing reliance on dollars. Banks such as Ecobank, with pan-African coverage, integrate PAPSS in their offering, in addition to ancillary services to support corporate navigate a real-time environment.

Africa’s outlook is mixed but improving. If global rates decline, pressure on local currencies and debt burdens is expected to ease. Treasurers will remain focused on liquidity buffers, FX planning and working capital discipline. Mobile money will deepen integration with formal banking and instant payments will expand. PAPSS could gradually transform intra-African cash flows. For corporates, the imperatives are unchanged: secure access to FX, safe local banking partners, and digital tools to accelerate liquidity.

Asia-Pacific is vast and heterogeneous, from advanced economies like Japan and Australia to giant emerging markets such as China and India and the fast-growing nations of Southeast Asia. Treasury practices vary widely, shaped by monetary policies, foreign exchange regimes and rapid adoption of digital payments.

China’s financial cycle in 2024 and 2025 has been the reverse of the West. While the United States and Europe tightened policy, the People’s Bank of China cut rates to support a slowing economy. Deposit and money market yields hovered near 2%, leaving corporates with little incentive to park excess cash. Instead, treasurers focused on conserving liquidity or paying down debt amid weak demand and an emerging property sector crisis. At the same time, China accelerated efforts to internationalise the renminbi. Cross-border RMB credit surged by more than $370 billion since 2021, while treasurers across Asia increasingly handle RMB liquidity, with many maintaining accounts in Hong Kong and hedging through the offshore CNH market.

Among providers, ICBC and Bank of China remain central partners for domestic liquidity, while global banks such as HSBC and Standard Chartered are valued for connecting RMB cash pools with wider global networks.

After decades of ultra-loose policy, Japan finally ended negative rates in 2024, moving to a +0.5% policy rate by early 2025. The weak yen has boosted exporters’ cash flow, but with a squeeze effect towards importers. Japanese banks such as Mizuho, MUFG, SMBC remain core for domestic corporates, while foreign players like J.P. Morgan and Bank of America provide cross-border cash and liquidity management, reflecting their strong technology capabilities.
India continues to grow at 6%–7%, with the RBI keeping rates around 6.5%. Treasury operations are being reshaped by the Unified Payments Interface (UPI), which now handles billions of instant transactions monthly. UPI has transformed collections and vendor payments, reducing cash-in-hand and accelerating liquidity.

Southeast Asia is at the forefront of payments connectivity. Systems such as Thailand’s PromptPay, Singapore’s PayNow and Malaysia’s DuitNow are being linked cross border, allowing corporates to move liquidity regionally in real time. By 2025, ASEAN central banks aim to interconnect all fast-payment systems. DBS, ranked #1 in the region by respondents, has been a leader in driving adoption of instant payments and API-based cash management across Southeast Asia. UOB and OCBC are also prominent in Singapore and the region, focusing on integration with treasurers’ systems.

Being the home of technology giants, treasury priorities in this segment are focused on capital expenditure on facilities and R&D, often funded partly from reserves and partly through dollar bonds. Here, banks like HSBC, DBS, Deutsche Bank and Bank of America play a critical role in structuring cross-border liquidity and FX hedging.

Asia is leading in treasury digitisation. Cloud-based TMS, API connectivity and mobile-first banking are widespread. Treasurers approve payments and monitor liquidity via secure apps. Experiments on the blockchain infrastructure, AI-driven cash forecasting tools from Indian fintechs and China’s digital RMB pilots all point to a region at the cutting edge.

The regional outlook is cautiously optimistic. China’s trajectory is the swing factor: stronger growth would lift exports across Asia, while prolonged weakness could weigh on supply chains. India and Southeast Asia remain growth drivers. FX volatility and US rate differentials will continue to shape cash strategies. For corporates, treasurers will maintain precautionary cash buffers, expand instant payment use and prepare for greater RMB integration. Banks that can combine scale with innovation – led by DBS, HSBC, JP Morgan and Bank of America – are best placed to serve treasurers navigating Asia’s complexity.

Europe’s cash management landscape in 2025 is defined by a sweeping regulatory reform in payments. The EU Instant Payments Regulation, adopted in 2024, mandates all euro-area banks must be able to receive instant SEPA transfers by January 2025 and send them by year-end, processed within 10 seconds and priced no higher than standard transfers. This will accelerate adoption from the current 16%–19% of credit transfers toward universality. Corporates’ benefits are clear: suppliers can be paid instantly on due dates, receivables are credited immediately and cash can be held until the last moment, improving working capital. But treasurers must adapt to new intraday liquidity demands and round-the-clock payment cycles.

Open banking (PSD2/PSD3) and digital money initiatives are advancing too. The ECB has moved the digital euro into its preparation phase, while the EU’s MiCA (markets in crypto assets) regulation sets standards for these types of assets. For treasurers, a wholesale digital euro or tokenised deposits could eventually streamline pooling and cross-border payments, but these remain at pilot stage. For now, blockchain applications are mostly confined to trade finance experiments in select markets.

The Corporate Sustainability Reporting Directive (CSRD) is another driver: from 2024, large firms must disclose ESG metrics. Treasurers are increasingly asked to integrate sustainability into investment policies, for example restricting short-term investments to instruments aligned with ESG principles.

Among the leading providers, ING stands out as the #1 choice, combining exceptional technology with strong client service. Its ability to deliver pan-European solutions consistently, while maintaining close connections to local markets, positions it as a central partner for corporates navigating complex regional structures. Treasurers point to ING’s strength in innovation and responsiveness as differentiators in a crowded market.

UniCredit and Raiffeisen Bank are equally influential in continental Europe, particularly in Central and Eastern Europe where their networks are extensive and their expertise deep. Their strong presence in high-growth markets makes them natural partners for corporates expanding eastwards, where navigating regulation, payments infrastructure and liquidity management requires banks with on-the-ground experience.

Citi’s global network ensures it remains one of the most important cash management providers in Europe. Multinationals prize its ability to integrate regional cash flows into global liquidity structures, while also benefiting from Citi’s technology platform that offers real-time visibility and scalability. This combination of reach and reliability means Citi continues to feature at the top of many treasurers’ banking panels.

BNP Paribas and Société Générale leverage their European scale to stand out. BNP is frequently cited for its payments expertise and seamless ERP integration, while Société Générale is praised for the stability of its platforms and sophistication of its pooling capabilities. Together, they underscore the strength of French banks in providing both domestic and cross-border solutions.

Deutsche Bank and HSBC remain pillars of European cash management. Clients highlight Deutsche Bank’s expertise in cross-border transactions and its ability to integrate with corporate systems, while HSBC is consistently recognised for service quality and global reach. Both banks are considered safe havens for treasurers looking for sophistication alongside stability.

Other players bring regional strength. Crédit Agricole and Erste Group are recognised for balancing strong domestic franchises with cross-border support, particularly in central and eastern Europe. Santander, Intesa Sanpaolo and OTP stand out in Iberia, Italy and central Europe respectively, offering cost-competitive solutions paired with deep local expertise. For corporates with regional footprints, these banks remain essential partners.

The outlook for 2025 is one of cautious adaptation. Rate cuts from the ECB and BoE would ease interest burdens but reduce yield on deposits, forcing treasurers to reassess investment strategies. Growth is expected to remain weak: IMF forecasts eurozone GDP barely above 1%. Energy remains a geopolitical risk, with the conflict in Ukraine continuing to cast uncertainty.

Banks that combine scale, technology and local expertise – from ING and UniCredit to Citi, BNP Paribas and Deutsche Bank – are best placed to serve as long-term partners in this evolving landscape.

Latin America is shaped in 2025 by high inflation, sharp currency swings and wide disparities in financial stability between countries. The past two years have been a story of divergence: some economies successfully tamed inflation and began easing monetary policy, while others sank deeper into crisis. For treasurers, that means strategies must balance defensive liquidity protection with the ability to capitalise on high-yield opportunities.

Brazil provides a relatively positive example. With inflation under control, Brazil began cutting rates in August 2023, bringing the Selic down to 12.25% by late 2024 and signalling further easing. During the high rate period, corporate borrowing costs exceeded 15%–20%, forcing many firms to delay investment or turn to offshore liquidity and financing.

The payments revolution has been equally transformative. Pix, Brazil’s instant payment system, is now embedded in corporate AR/AP. By 2024, more than 10 million businesses were using Pix to collect customer payments and pay suppliers or gig workers in real time. Treasurers benefit from near-instant cash visibility and intraday liquidity control.

Angelo Russomanno, director of cash management at Itaú Unibanco, sees recurring payments as a powerful lever for efficiency and growth. “Our data shows, for example, that essential service companies – water, energy, gas, sanitation, telecommunications – receive 61% of payments as one-offs and 39% via direct debit or credit card,” he explains. “There is potential for up to a 30% increase in payments when using a recurring payment solution – compared to one-off payments via boleto or QR Code,” he adds.

Pix’ success has influenced regional peers, with Mexico’s CoDi and Peru’s fast payments initiatives seeking to replicate Brazil’s model.

At the other extreme lies Argentina, where hyperinflation above 140% and multiple peso devaluations created a “survivalist” treasury culture. Corporates there convert pesos to dollars or hard assets as quickly as possible, use dollar-linked instruments where permitted and manage cash cycles in days rather than months. With capital controls restricting access to dollars, many firms resort to creative liquidity instruments as an inflation hedge. Multinationals often ring-fence Argentine operations, unable to repatriate cash freely and write down local balances.

Other Andean and Southern Cone economies saw more stability. Colombia, Chile and Peru all endured aggressive rate hikes in 2022 and 2023, followed by easing once inflation receded.

Credit access remains a structural challenge across the region. Large corporates can issue international bonds or borrow from global banks at competitive terms, while SMEs often face loan rates above 20%–30%. This gap has spurred fintech innovation in lending and factoring, with platforms providing finance and working capital solutions. Treasurers at large firms increasingly partner with these fintechs to extend financing to suppliers, strengthening ecosystems and securing longer payment terms.

In this landscape, global and regional banks play a central role. J.P. Morgan is ranked as the leading provider in Latin America, recognised for its exceptional product breadth and technology. Its regional strength lies in integrating local liquidity with global cash structures, giving multinationals a reliable partner in volatile markets. Bank of America and HSBC also stand out for combining robust platforms with strong regional coverage, particularly in Mexico and Brazil, where technology integration and security are highly valued.

Citi remains a trusted choice, especially for multinationals needing both scale and flexibility. Its ability to operate seamlessly across borders resonates in a region where FX, regulation and credit conditions vary sharply.

Local champion Itaú commands strong loyalty in Brazil, where its on-the-ground expertise and innovation in digital channels position it as a natural partner for domestic corporates. In the past year, Itaú Unibanco grew fee and interest revenues on the back of higher card use, transactional volumes and fund management, while ensuing best in class client experience. The bank deployed innovations such as Pix NFC, Pix Automático, BNPL via Pix, ERP integrations and the NCR Brasil acquisition. Advances in APIs, ERP connectivity and generative AI reinforced the bank’s digital transformation, while expanded coverage introduced Banricompras and regional solutions like Connect Cash and Multibanco. “Everything we build starts with our clients. Our client-centric approach means designing solutions that simplify complexity, improve treasury efficiency and enable growth,” explains Davi Faleiros, director of cash management at the bank.

Santander and BBVA continue to leverage their Iberian heritage and deep presence across Spanish- and Portuguese-speaking markets, offering corporates scale across Mexico, Chile, Colombia and Peru.

Looking ahead, inflation is receding and most central banks are set to continue or begin easing cycles in 2025. At the same time, integration initiatives hold promise. Regional discussions on linking instant payment systems and reducing reliance on the dollar for intra-regional trade could eventually streamline cross-border liquidity. The lessons of recent years, from Brazil’s Pix revolution to Argentina’s cash-preservation tactics, underline that adaptability is the core skill for treasurers in Latin America.

In the Gulf Cooperation Council (GCC), higher oil prices since 2022 generated large fiscal surpluses, swelling government accounts and corporate deposits. Even after oil moderated to around $80 a barrel, most GCC states remained comfortably above their fiscal break-even levels. This stability translated into improved government payment cycles, stronger private-sector liquidity and continued infrastructure spending. Mega projects such as Saudi Arabia’s Vision 2030 developments and the UAE’s infrastructure pipeline cleared cash through local economies, sustaining strong inflows for contractors and suppliers. Treasurers in the GCC often found themselves managing excess liquidity, deploying it into debt repayment, expansion or high-yield deposits.

Because most GCC currencies are pegged to the U.S. dollar, the Federal Reserve’s tightening cycle was mirrored locally. Interest rates rose in tandem to around 5%, rewarding corporates with strong cash positions. With inflation contained at 3%-5%, companies could earn real returns on local deposits, a sharp contrast with previous years of near-zero yields. Gulf banks, already well capitalised, benefitted from these conditions and corporate confidence in keeping deposits in local banks remained high.

Banks in the region are positioning themselves as core partners in this cycle. Mashreq leads the rankings, recognised for its technology-driven platforms and responsiveness to corporate needs. HSBC and Citi remain trusted names for multinationals and regional champions, offering integration with global cash structures while adapting to local requirements. Emirates NBD and Standard Chartered also feature strongly, reflecting their ability to bridge international networks with deep GCC coverage. First Abu Dhabi Bank (FAB), Abu Dhabi Islamic Bank (ADIB), Arab Bank and Ahli United Bank continue to serve corporates with strong local ties, often as relationship-driven partners for regional liquidity.

Payments innovation is another theme shaping the region. Saudi Arabia’s “sarie” and the UAE’s IPP are bringing real-time payments into the corporate sphere, while the Gulf Payments Company works to link regional RTGS systems. Cross-border settlement remains slow and reliant on correspondent banks, but initiatives such as a potential GCC digital currency for wholesale settlements could transform liquidity flows.

North America’s cash management environment in 2025 reflects the aftermath of the sharpest monetary tightening in decades and the resilience of corporates navigating it. For corporates, this translates into permanently higher funding costs and the need to balance debt management with the erosion of interest income as yields eventually decline.

The 2023 U.S. regional banking crisis reshaped treasury priorities. The failures of Silicon Valley Bank, Signature Bank and First Republic forced corporates to rethink counterparty risk. Many firms discovered overnight that uninsured deposits were vulnerable, prompting a wave of diversification. Yields near 5% and the safety of government-backed collateral made money market funds (MMFs) a compelling alternative to uninsured deposits. Treasurers updated policies to incorporate MMFs systematically, balancing the benefits of yield and diversification with slightly less on-demand liquidity compared to deposits.

At the same time, new payment rails are reshaping cash management. The Federal Reserve’s FedNow system went live in July 2023, offering 24/7 real-time gross settlement in competition with the private-sector RTP network. Adoption is still building but accelerating, with large banks already embedding FedNow into their corporate portals. For treasurers, instant payments create opportunities for just-in-time settlement, faster receivables and more flexible payroll and refund processes. But they also require new approaches to reconciliation and intraday liquidity, since payments can now land at any hour. Canada is on a similar trajectory, with Payments Canada’s long-awaited Real-Time Rail expected to launch in 2026, promising similar benefits for Canadian corporates.

Despite digital progress, legacy practices remain entrenched. Checks are still used for payments, a major fraud risk. Treasurers are under pressure to migrate toward ACH, instant payments and card solutions, supported by industry initiatives and government modernisation programs. Physical cash usage continues to decline, but for cash-heavy sectors like retail and food service, investment in smart safes and armoured transport remains essential to streamline deposits and reduce shrinkage.

The competitive landscape for cash management in North America reflects these shifts. J.P. Morgan, a leading provider, is praised for combining scale, advanced technology and integration of FedNow and RTP into client platforms. Bank of America has built a strong reputation with its CashPro platform, helping corporates streamline global liquidity and payments. Citi continues to stand out for its international network, enabling U.S. and Canadian firms to connect seamlessly with overseas operations. Deutsche Bank, #1 choice of North American corporates and HSBC also perform strongly, particularly for multinationals with cross-border needs, while BNP Paribas brings a European perspective to U.S.-based treasuries.